Importing Computer Equipment from US. VAT & Duty Question.

2PiDesign

My business is mechanical design services, I want to buy a mobile workstation (laptop for CAD) from the US to provide these services (not for resale).

The reseller in the US believes I will be liable for VAT. I would have assumed not, as the equipment is not for resale. I have submitted an enquiry with revenue, but that could take up to a month to process.

I am VAT registered.

It's coming in at $5000 delivered, so VAT would be substantial on this.

Would I be liable for VAT on this?
Also, anybody have any idea how much duty I could expect to pay?
Would there be any issues paying for this with a Revolut debit card in order to avoid currency exchange fees? (I am a sole trader, this is my personal card)

Thanks in advance.

srsly78

Probably also liable to extra import duties. WHY are you importing from usa? Just buy from eu instead - then you can get zero-rated vat.

2PiDesign

Thanks for your reply. I'll have to reconsider if I am liable for VAT, I expected it to be zero rated when importing from the US.

It's a specialist computer, laptop with a desktop processor, there is one competitor with an Irish distributor, but their warranty is pretty poor & the distributor has no interest in supporting the product.

srsly78

This stuff isn't that specialised at all, just get any laptop with decent graphics. CAD graphics is a bit of scam!

2PiDesign

CAD graphics is debatable, I prefer to have a quadro so that if I have an issue, it doesn't get written off by support as graphics card related.

What is specialist about it is the CPU, Intel® Core™ i7-8700K 3.7/4.7GHz.

Even the most expensive brand name workstations run much slower laptop CPU's & CAD performance is very dependent on single core CPU speed.

srsly78

TBH I use proper workstations and hpc clusters for this, not a laptop - but best of luck.

2PiDesign

Ok, updating this for anybody that comes across it through search. I was talking to revenue & VAT can be reclaimed, as it will be paid to Irish revenue, it is entered into section T2 of the VAT3 form.

srsly78 wrote: »

TBH I use proper workstations and hpc clusters for this, not a laptop - but best of luck.

Thanks, I use a workstation too, but need something for client visits.

RUDOLF289

2PiDesign wrote: »

My business is mechanical design services, I want to buy a mobile workstation (laptop for CAD) from the US to provide these services (not for resale).

The reseller in the US believes I will be liable for VAT. I would have assumed not, as the equipment is not for resale. I have submitted an enquiry with revenue, but that could take up to a month to process.

I am VAT registered.

It's coming in at $5000 delivered, so VAT would be substantial on this.

Would I be liable for VAT on this?
Also, anybody have any idea how much duty I could expect to pay?
Would there be any issues paying for this with a Revolut debit card in order to avoid currency exchange fees? (I am a sole trader, this is my personal card)

Thanks in advance.

Good morning,

All commercial shipments are subject to Duty and VAT at the point of entry.

Most computer equipment is zero-rated, so that leaves the VAT.

If you are VAT registered, the VAT you pay on imports from outside the EU is a deductible input in your periodic VAT return. So at the next VAT return after your import, you will claim it back through your VAT return.


Cheers,
Rudolf289

2PiDesign

Hi Rudolf,
Thank you for confirming, much appreciated.

Best Regards,
Dave.

2PiDesign

Ok, I need to send this back to the US for the sellers to run diagnostics & repair. According to UPS it appears I am going to have to pay duty on this to US authorities.


I have already paid €90 duty when buying the unit (thought it was 0% duty, but apparently not), to pay duty again to get the unit RMA'd would sting, as would the possibility of getting hit for duty when it is returned to me.


Is this unavoidable?